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Money Saving Advice for Everyday LivingTue, 12 Dec 2017 03:46:39 +0000en-UShourly1thefrugaltoadhttps://feedburner.google.comTop 5 Steps to Help SME’s Get Business Loanshttp://feedproxy.google.com/~r/thefrugaltoad/~3/Glship1Vqe8/top-5-steps-smes-get-business-loans
https://www.thefrugaltoad.com/personalfinance/top-5-steps-smes-get-business-loans#respondMon, 11 Dec 2017 04:06:45 +0000https://www.thefrugaltoad.com/?p=10039Small businesses are usually lean on capital. Lack of adequate funding pushes most SME owners to business loans. It can be difficult for small businesses to get approved for a loan given strict lending standards imposed by banks. However, outside financing is an extremely important source of funding for small business loans for startups & […]

]]>Small businesses are usually lean on capital. Lack of adequate funding pushes most SME owners to business loans. It can be difficult for small businesses to get approved for a loan given strict lending standards imposed by banks. However, outside financing is an extremely important source of funding for small business loans for startups & small businesses to cover regular operating expenses, such as inventory and payroll.

Below are five tips that will help small businesses that are in the process of looking for a business loan.

Analyze Capital Needs of Your Small Business

There are 4 main reasons most small businesses take out a business loan:

To fund start-up expenses of the business

Management of day-to-day expenses

To scale up or grow the business

For safety cushion

Decide Which Type of Financing Your Business Needs

Based on your reasons behind taking out the business loan, you will map out the most compatible business loan for your venture.

Obtaining financing for a start-up is very difficult. Lenders are risk adverse and obviously prefer to provide loans to a venture that has an established track record of generating revenue. But a business that hasn’t started yet, can’t give them the security of timely repayment.

However, startups and small businesses that are operating and have generated cash flow for more than a year, have more financing options. These include term loans, SBA loans, invoice factoring and business line of credit.

Carefully Choose Your Lender

The good news is SME's have multiple avenues to get business loans, such as nonprofit, banks, online lenders and micro-lenders. After you have figured out the most appropriate financing option and lender, you will want to perform a comparative study on 2-3 options before choosing the final lender.

Go for banks when-

You will be able to provide collateral

You have great credit

You won’t need fast cash

Conventional bank options cover lines of credit, term loans as well as commercial mortgages for buying properties/refinancing. The U.S.SBA extends small business loans through banks via it's short-term microloans, disaster loans and 7 (a) loan policy. It is true that small businesses have a hard time getting approved for bank loans but banks usually offer lowest APR.

Go for microlenders when-

You won’t qualify for conventional loans

Microlenders usually extend short-term loan options which are less than $30,000-$35,000. However, the APR will be higher compared to bank loans and you may have better luck obtaining financing with a micro-lender if you have a credit score less than 700.

Go for online lenders when-

You can’t provide collateral

You need quick funding

You don't have time to leave the office

Online lender loans for small businesses range from say $500-$5,000,000. Depending on your credit score and other factors, you can expect an APR that could be anywhere between 7 percent to 108 percent.

Check whether you qualify

Check credit score

Your credit score is certainly one of the most vital factors when it comes to applying for small business loans. Make sure you get a free credit report from all the 3 leading credit bureaus- TransUnion, Experian and Equifax. Your score must be above 680 if you are planning to seek financing from a bank.

Duration of your business

2 years for bank loans

1 year for most of the online loan for small businesses

Your revenue

Most of the online lenders ask for an average annual revenue of $50,000.

Would you be able to make payments?

Calculate whether you will be able to make regular payments. If not, wait for a few months till you acquire enough cash consistency. One rule of thumb states that the total cash flow of borrower should be 1.25x of your total expenses.

Organize needed documents

If you think you qualify for any small business loans, gather all the needed documents to commence the process. The most important documents you will need here are-

Personal and business tax returns for last 3 years

Personal & business bank statements

Financial statements of business for last 3 years

Legal documents related to your business such as LLC, C or S Corporation papers

]]>https://www.thefrugaltoad.com/personalfinance/top-5-steps-smes-get-business-loans/feed0https://www.thefrugaltoad.com/personalfinance/top-5-steps-smes-get-business-loansSmartphone Theft: How to Deter Thieves and Protect Your Datahttp://feedproxy.google.com/~r/thefrugaltoad/~3/aLeWQWqL_cM/smartphone-theft-how-deter-thieves-protect-your-data
https://www.thefrugaltoad.com/personalfinance/smartphone-theft-how-deter-thieves-protect-your-data#respondSat, 09 Dec 2017 20:13:58 +0000https://www.thefrugaltoad.com/?p=10041 In a world where smartphones have become an integral part of our working and social lives, the threat of smartphone theft has been getting greater and greater. Over 400,000 people in the UK had their phone stolen in 2016. Theft of phones by moped riders has become a serious problem on the streets of London. Despite […]

In a world where smartphones have become an integral part of our working and social lives, the threat of smartphone theft has been getting greater and greater. Over 400,000 people in the UK had their phone stolen in 2016. Theft of phones by moped riders has become a serious problem on the streets of London. Despite the epidemic, nearly a third of phone owners in the UK say they don't take any preventative measures.

Cellphone theft is a major problem in the U.S. as well. According to Consumer Reports National Research Center, 2.1 Million cell phones were stolen in the U.S. last year with another 3.1 Million cell phones reported as being lost.

Here, we'll lay out three top tips that will allow you to keep your most important gadget safe.

Make it Hard to Get To

Think about the places where a thief is most likely to be able to snatch your phone: if it's hanging out of your back pocket, sitting in your open hand bag, or laying on top of your hand, it's an open target for a thief to grab. Make a habit of keeping your phone somwhere that'a hard to get to, such as a zipped inside pocket of your coat or handbag.

Only use your phone out on the street when you absolutely have to. This is where most cell phone thefts occur so you need to be cautious. When you do use it outside, adopt a defensive posture and shield your phone from passers-by, keeping it locked in your hand in a claw like grip and pressed against your chest.

Make Good Use of the Inbuilt Security Features

Any good smartphone should ship with inbuilt features that will allow you to keep your personal data safe if the phone does get taken from you. Set up a hard to guess passcode or PIN for your phone, or a biometric security feature such as fingerprint ID. Download and set up an app such as “Find My iPhone” that will allow you to track the phone's location and lock or wipe it remotely. You may even be able to display a message on the phone that will help it get returned to you.

Not all of these security features will be available on every model of phone, so make sure to check with the manufacturer's specification. And remember that these features will only work if you actually switch them on and configure them.

Get High Quality Smartphone Insurance

When a gadget is integral to your daily life, you need to be able to replace it as soon as possible if it gets stolen. Having a decent phone insurance policy will allow you to get a replacement, and avoid a situation where your phone gets stolen at a time when you can't afford to buy a new one. Different insurance premiums will offer varying coverage, so make sure to check what you're getting before you sign the contract.

Most good iPhone insurance policies will cover loss, accidental damage and unauthorized calls. Generally, they won't cover the theft of your phone if you leave it unattended in a public place like a café. They also might not cover you if you don't report the theft quickly enough, so make sure to report it within 24 hours of noticing that the phone is gone.

]]>https://www.thefrugaltoad.com/personalfinance/smartphone-theft-how-deter-thieves-protect-your-data/feed0https://www.thefrugaltoad.com/personalfinance/smartphone-theft-how-deter-thieves-protect-your-dataHealthy Living: How to Improve Air Quality in Your Homehttp://feedproxy.google.com/~r/thefrugaltoad/~3/7W5RYXVXXkY/healthy-living-improve-air-quality-home
https://www.thefrugaltoad.com/household/healthy-living-improve-air-quality-home#respondMon, 04 Dec 2017 13:00:35 +0000https://www.thefrugaltoad.com/?p=10023There are so many different things that a homeowner has to keep up with in order to keep their residence and all of its systems running smoothly. Without a lot of hard work, it will be nearly impossible for a homeowner to avoid issues within their home. One of the biggest concerns that a homeowner […]

]]>There are so many different things that a homeowner has to keep up with in order to keep their residence and all of its systems running smoothly. Without a lot of hard work, it will be nearly impossible for a homeowner to avoid issues within their home. One of the biggest concerns that a homeowner should have is the air quality they have. There are a variety of factors that can affect the air quality in a home like issues among many others. Here are some things that a homeowner can do to improve air quality in their home.

It Starts With the Air Filters

An air conditioner will take the air on the outside of a home and then convert it into cooler air for the home to use. During this process, a lot of allergens are filtered out by the air filter in the unit. Neglecting to change the air filter can lead to a variety of different issues that can compromise the air quality. Replacing the filter on a regular basis should be part of your regular home maintenance schedule and will not only improve the quality of air but the efficiency and life of your air conditioning system.

Getting the Air Ducts Cleaned Will Improve Air Quality

Another common source of allergens in a home are the air ducts. The longer that these air ducts go without proper cleaning, the harder it will be for a homeowner to avoid a lot of dust and pollen. Instead of the air quality in a home suffering, the homeowner will have to take the time to find the right professionals to clean their ducts. Attempting to do this type of work without the right experience and tools will be disastrous and will usually lead to a homeowner having to spend even more money.

Maintaining Your A/C System

Properly maintaining your air conditioning system not only will add years of life to your system, it will improve the operating efficiency and quality of the air indoors. Yearly maintenance should include cleaning of evaporative and condenser coils, check and adjust thermostat, condenser fan motor, condensate drain, controls, lubricate moving parts, adjust coolant level, etc. Be sure to hire a licensed contractor for AC repair or maintenance and ask to have an inspection report of the work performed.

Dust on a Regular Basis

Regardless of how often a homeowner has their duct work cleaned, there will always be a small amount of dust to deal with. By taking the time to dust on a regular basis, a homeowner will be able to reduce the amount of particles floating around in their air and improve air quality. There are a number of green products on the market that can make dusting much easier and less time-consuming. Researching the various products on the market will allow a homeowner to keep their home cleaner without having to spend a lot of time in the process.

Other Ways to Improve Air Quality

It is estimated that the average american household uses household products and goods that contain over 60+ chemical compounds and many of these chemicals find there way into the air we breath. There are many environmentally safe cleaning products on the market that can make a dramatic difference in the quality of air. Another easy way to cut down on airborne dust is to use a vacuum cleaner with a HEPA filter that filters out pollutants from exhaust air. Mold and dust mites can be a major indoor air pollutant and the best way to reduce your risk is to keep humidity to no more than 30-50% by using a dehumidifier or air conditioner. And finally, the best way to keep the air clear is to install and use a portable room HEPA air filter.

Changing the air filter in your air conditioner, dusting regularly, and selecting the right professionals to help with this type of work is vital to improving indoor air quality.

]]>https://www.thefrugaltoad.com/household/healthy-living-improve-air-quality-home/feed0https://www.thefrugaltoad.com/household/healthy-living-improve-air-quality-homeMoney Saving Tips for Young Professionalshttp://feedproxy.google.com/~r/thefrugaltoad/~3/Az6orz_6xBU/money-saving-tips-young-professionals
https://www.thefrugaltoad.com/personalfinance/money-saving-tips-young-professionals#commentsSun, 03 Dec 2017 18:16:08 +0000https://www.thefrugaltoad.com/?p=9041So, you have now finally graduated and made your way into the real world of financial independence. Earning your own money for the first time is exciting and you may be tempted to go a little overboard with spending once you have your first paycheck . While earning your own money is exciting, it is […]

]]>So, you have now finally graduated and made your way into the real world of financial independence. Earning your own money for the first time is exciting and you may be tempted to go a little overboard with spending once you have your first paycheck . While earning your own money is exciting, it is also a huge responsibility and the earlier you start saving, the brighter your financial outlook will become..

Managing your personal finances can be a bit of a challenge, especially if you haven't had experience managing a budget. To get you started, here are several tips for getting a grip on your personal finance while you are still a young adult:

Sacrifice and self-control

Hopefully you were taught the importance of self-control when you were much younger, because it is an essential part in managing your own finances. We know that it is tempting to eat out and visit bars every so often, or to buy that pair of jeans that you don’t need but simply love, but the fact of the matter is that you are going to have to make sacrifices if you want to save any money. Eat at home more, take advantage of free and low-cost activities, and don’t splurge on luxuries that you don’t need.

Look after your health

Health insurance is expensive and the more unhealthy and unfit you are, the more it’s going to cost you. Take care of your body, exercise often and eat healthy and you will be paying a lot less on your health insurance. It also means that you will have to go to the doctor and dentist less, which is important if you are on a basic health insurance plan.

Budgeting is king

There is nothing that helps you save money quite like seeing exactly where your money is actually going. Take a month to keep an eye on your finances then go through where exactly you spent your money – you will then be able to create a comprehensive budget to keep to. Budgeting is the best way to keep on top of your finances and to ensure that you aren’t spending more than you have coming in.

Saving for retirement

It may seem a long way away, but the sooner you start saving for retirement the better, and if you do it properly you may even be able to retire early. Company sponsored retirement-structures are a really great choice, as the company will be putting in pretax money, you can put in more than on an individual plan and the company will often match whatever it is you put in. Other options are retirement annuity funds, personal investment plans and perhaps investing in real estate.

By saving from an early age, you are ensuring that you will be better prepared for retirement, and you can be more comfortable knowing that your personal finances are in good shape.

]]>https://www.thefrugaltoad.com/personalfinance/money-saving-tips-young-professionals/feed1https://www.thefrugaltoad.com/personalfinance/money-saving-tips-young-professionals4 Ways to Save Money When Starting Your Businesshttp://feedproxy.google.com/~r/thefrugaltoad/~3/_5BjCGGGhtA/4-save-money-starting-your-business
https://www.thefrugaltoad.com/personalfinance/4-save-money-starting-your-business#respondSat, 18 Nov 2017 17:52:56 +0000https://www.thefrugaltoad.com/?p=9986Starting Your Own Business Can Provide More Than Just Income A lot of people dream about being their own boss and starting their own businesses. But there’s one thing that new businesses need that most aspiring entrepreneurs lack—money. Getting a loan for a new business can be nearly impossible, so those who do start their […]

A lot of people dream about being their own boss and starting their own businesses. But there’s one thing that new businesses need that most aspiring entrepreneurs lack—money. Getting a loan for a new business can be nearly impossible, so those who do start their own businesses often have to fund it themselves. This article will provide you with 4 helpful ways that you can save money towards starting your dream business and becoming your own boss.

Simplify Your Life

The first thing you’re going to have to do is make some sacrifices. Cutting back on some frugality now can go a long ways towards making your entrepreneurial dreams a reality. When asked how he would do things differently, if he had to rebuild his consulting business from scratch, multi-millionaire and entrepreneur Sam Ovens said, “The first thing I would do is I would just ruthlessly cut all my unimportant costs. Nothing is more prohibitive to starting out as an entrepreneur than having flabbiness in your lifestyle and unessential expenses.”

Every dollar that you cut from your personal spending is another dollar that goes towards starting your business. Those Starbucks runs and nights out at the bar can very quickly turn into the startup fund you need. So practice a little discipline, and cut back on every unnecessary expense you can.

Put Away Savings First

Before you start making your monthly purchases, put money in a savings account that’s dedicated to your business—one that you don’t touch for personal expenses. This goes hand-in-hand with the previous suggestion, as you’ll have to learn to live on only a portion of your regular monthly income. Financial experts recommend putting 20% of your monthly income into savings for personal finances. So if you're trying to save to start a business, aim to save 30% to 40% of your income each month.

It may sound difficult to consider living on only 60-70% of your current income, but put that money into your savings account before you begin spending, it forces you to work with what you have left. And keep in mind that, according to the Quickbooks Resource Center more than 40% of small businesses started for under $5,000. So if you focus on putting money away for even a short amount of time, you could feasibly have enough money to start your business in a year.

Look for Opportunities to Trade Services

When you’re looking at starting your business, you can’t always afford to pay for the goods and services you need. But what many new entrepreneurs don’t know is that there are sometimes ways that you can trade your business’s products or services for the things that your company needs.

In fact, there’s an entire organization dedicated to it. The International Reciprocal Trade Association, or IRTA, is dedicated to matching up companies that want to barter or trade for goods or services. So before you pay for things your business needs, look around and see if you can’t trade for those items or services first.

Start with the Minimums

As you begin to put things into place for your business, it may be tempting to try to go “all in” on your investment by renting an office space, purchasing professional-looking office furniture, and hiring employees. You’ll reason with yourself that you have to look like a professional in order to get business. But that’s not necessarily true.

There’s no shame in being a one-man business in the beginning, and it’s not unheard of to meet with clients at their offices instead of having them come to you. Simple adjustments like these can allow you to minimize your startup expenses. Don’t be ashamed to run your business from your garage for the first little while. It’s okay to borrow, rent, or buy used office furniture. And if you do need to hire employees, look for outsourcing opportunities first.

With a little bit of discipline and a lot of drive, it’s completely possible to fund your own business. A bit of frugality now can help you to create a lucrative venture that will allow you to live comfortably in the future.

]]>https://www.thefrugaltoad.com/personalfinance/4-save-money-starting-your-business/feed0https://www.thefrugaltoad.com/personalfinance/4-save-money-starting-your-businessHow Currency Strength Impacts Your Financial Lifehttp://feedproxy.google.com/~r/thefrugaltoad/~3/XalAW1hmocw/how-currency-strength-impacts-your-financial-life
https://www.thefrugaltoad.com/personalfinance/how-currency-strength-impacts-your-financial-life#respondMon, 06 Nov 2017 01:57:19 +0000https://www.thefrugaltoad.com/?p=9961Currencies allow for the efficient buying and selling of goods and services between individuals and countries and have been around since the stone age. The use of paper currency began in the 1690's with paper notes being issued by the Massachusetts Bay Colony to pay for military excursions. United States Notes or “green backs” were […]

]]>Currencies allow for the efficient buying and selling of goods and services between individuals and countries and have been around since the stone age. The use of paper currency began in the 1690's with paper notes being issued by the Massachusetts Bay Colony to pay for military excursions. United States Notes or “green backs” were introduced in 1862 and backed by the U.S. Treasury's promise to exchange the notes for gold coin. In 1913, the Federal Reserve was created to provide stability in our financial system as well as to combat inflation and provide for full employment.

The strength of a currency is primarily affected by the following three things:

Interest Rates: High interest rates tend to strengthen a currency however it's the interest rate level relative to other currencies that ultimately has more of an influence on currency strength.

Political Stability: A strong and stable government with a track record of policies supporting economic growth can attract investors and build confidence in a currency.

A strong currency makes exports more expensive and can lead to a trade imbalances with countries that have weaker currencies. Conversely, a weaker currency makes exports cheaper and tends to stimulate trade.

Dollar Index

The U.S. Dollar Index is an index that represents the value of the U.S. Dollar versus a basket of foreign currencies. The dollar index was created in 1973 and started with a baseline value of 100. The index has seen a high of 164 during the Latin Debt Crisis in 1985 and a low of 70 during the financial crisis in 2008. The index is an important tool for currency traders because it shows the relative strength of the dollar versus the currencies of our major trading partners.

Currency Pairs & Exchange Rates

A currency pair is a quote between two currencies. The first currency in a currency pair is referred to as the “base currency” and the second currency is called the “quote currency”.

An exchange rate is the value of one currency expressed in terms of another currency for the purpose of conversion. As with any rate, exchange rates vary depending upon the strength or weakness of the currencies in question. Exchange rates are another indicator of the relative strength or weakness of currency pairs. For instance, stronger currencies tend to show positive exchange rate correlation over time when paired with weaker currencies. These currency pair trends can also provide insight into trade balances between countries.

Currency Strength & Monetary Policy

As we have discussed, currency strength affects the prices of goods and services for export and therefor affects the trade balances with foreign countries. Currency strength also plays an important role in setting monetary policy.

An “easy” monetary policy or lower interest rates has the effect of lowering the exchange rate, more expensive export prices, and a negative impact on trade balance.

On the other hand, a “tight” monetary policy or higher interest rates has the effect of a higher exchange rate, cheaper export prices, and a positive impact on trade balance.

Currency Pairs and Forex Trading

Forex trading involves the simultaneous buying of one currency and the selling of another currency. In addition to spot trades, there are opportunities like currency options trading which can be a hedge during times of financial instability or a relatively low risk instrument for speculative trading when the outcome is predictable. In other words, a trader may buy a currency pair if he believes the exchange rate will rise, or sell a currency pair if he believes the base currency will decrease in relation to the quote currency.